Finance and Financial Management Commons^™

The Acquisition Of Capabilities: How Firms Use Dynamic And Ordinary Capabilities To Manage Uncertainty, Kris Irwin, Collin Gilstrap, Paul Drnevich, Manoj Sunny

Management Faculty Publications

How organizations utilize capabilities to achieve competitive advantage and improve performance has received an abundance of scholarly attention. Both ordinary and dynamic capabilities (DC) enable organizations to achieve higher performance when leveraged appropriately and under favorable conditions. The complexity of an organization's motives for why and how different capabilities are acquired drives us further to explore what complementarities organizations might achieve and under what contexts. Specifically, we explore how firms engaging in mergers and acquisitions (M&A) to acquire dynamic and/or ordinary capabilities experience different market reactions and levels of short- and long-run value creation given environmental uncertainty. Our results support …

The Industry Expertise Of Sell-Side Equity Analysts, Matthew Louis Dearth

Dissertations and Theses Collection (Open Access)

Institutional investors, the most important consumer of analyst research, consistently rank industry knowledge as the most important attribute of analysts. Despite this, little is known about how investors measure industry knowledge since analyst output which can be evaluated objectively is usually associated with firm-level outcomes such as earnings forecasts or price targets. Comprehensive data are recently available for analyst forecasts of key performance indicators (“KPIs”), firm-performance metrics specific to a particular industry. Whereas reactions to earnings forecasts and other firm-level outputs only inform us about analyst skill in firm-level predictions, stock-price reactions to forecast revisions of industryspecific KPIs can proxy …

The Art Market’S Inflection Point: The Inception Of Modern Art Investment, Maria B. Abraham

MA Theses

The relationship between art and finance derives from the socioeconomic realization that art has high-value potential and diversification benefits within the investment sphere. This paper interprets the evolution of art's financialization in three different market contexts as the cause of an inflection point in the art market. Through research in press articles, interviews, published white papers, and journals on statistical art data analysis results, this thesis demonstrates the link between cultural capital and financial investment, which gave rise to initiatives today that bridge the gap between wealth and the accessibility to the art market. A technological or specialized element across …

Department Of Finance Newsletter, 2022, University Of Northern Iowa. Department Of Finance.

Department of Finance Newsletter

Contents:

From the Department Head --- 3
Ten Days for Trading: Professors study patterns during disclosure window --- 4
Early Exams Give Boost: UNI Students Get Ahead by Passing Tests --- 8
Teens Learn Money Skills: Financial literacy program sees continuing success --- 9
Learning Real-World Trading Tools --- 10
Eirk W. Skovgard Serves as 2022 Alumni in Residence --- 12
2021-22 Scholarship Recipients --- 13
Welcome Arun! New assistant professor joins Finance Department --- 14
Finance Advisory Board --- 15
Adventures in Real Estate: Students attend events across the state --- 16
Bringing Equitable Access to Real Estate: Sylar …

An Analysis Of Impacts Of Covid-19 On Salary Cap Allocation And Performance In The National Football League, Abai Houser

CMC Senior Theses

Professional sports are one of the most successful industries in the world. The live spectacle and in-person nature make sporting events a unique and individual experience. COVID-19 shifted how athletic events were operated, financed, and viewed, thereby changing leagues as well. The National Football League was one of the last sports to start its season during 2019 and 2020, setting the stage as the only league to not isolate its players in a safe operating space. This paper studies the effects of COVID-19 on the salary cap management of teams after the pandemic. The findings suggest that financial metrics analyzed …

Fund Characteristics Immunity To Covid-19 Pandemic: Evidence From Thailand, Primporn Thanomsakul

Chulalongkorn University Theses and Dissertations (Chula ETD)

This research investigates the relationship between COVID-19 growth rates and the performance of Thai equity funds during the pandemic. Focusing on weeks with substantial increases in COVID-19 cases, we hypothesize that negative returns primarily originate from these weeks. We acknowledge the pandemic's impact as a black swan event, instilling fear and uncertainty, and its demonstrated negative effect on fund returns. Moreover, our research aims to identify the fund characteristics that have provided resilience and immunity to the negative effects of the crisis. Using a panel data regression with a fixed effect model, we analyze various fund characteristics and their impact …

The Impact Of Perceived Corruption Levels In Public Sector On Stock Market Development, Chotiwat Kumhang

Chulalongkorn University Theses and Dissertations (Chula ETD)

Most of the empirical studies that analyze the impact of corruption on the economy suggest that corruption is a serious obstacle against economic growth. However, it is ambiguous whether corruption has negative effect on the financial sector, especially stock market development. Thus, the first objective of this paper is to reexamine the relationship between corruption and stock market development. Furthermore, several previous literatures argue that democracy potentially mitigates the negative effect of corruption on economic growth. By this argument, the second goal of this paper is to investigate whether democracy has influence on mitigating the negative impact of corruption from …

Trade Credit With Firms' Life Cycle: Evidence From Stock Exchange Of Thailand (Set), Chaiwat Sae-Low

Chulalongkorn University Theses and Dissertations (Chula ETD)

This study examines how firms’ life cycle affects Trade credit including the recession period by using evidence from Stock Exchange Thailand (SET). The study has been performed during 2000 – 2020 with 253 listed firms. Regarding results, it suggested that the firm life cycle has a significant impact on AR and AP days, except for AP’s growth. During the recession period, AP days for the introduction and mature stage have no positive impact. The empirical also finds there are no significant levels for the introduction and mature stage of AR and AP days, which have a high level of market …

Resilience In The Face Of Adversity: An Analysis Of The Refugee Entrepreneurial Population And Their Resources In The Mid-Atlantic Region Of The United States., Zahin Mahbuba

Undergraduate Honors Theses

This study presents an overview and analysis of refugee entrepreneurship in the United States' Mid-Atlantic region for refugee entrepreneurship by interviewing three refugee entrepreneurs and two professional individuals who actively work with refugee entrepreneurs. It introduces the refugee population and climate in the United States, and examines the connections between forced migration and entrepreneurship in the present literature along with factors that affect access and viability of entrepreneurship due to economic and social barriers, cultural and familial influences and financial hurdles. Through the interviews and examination of existing literature, three different traits distinguished refugee entrepreneurs in the region, according to …

Mathematical Modeling For A Multiproduct Manufacturing System Featuring Postponement, External Suppliers, Overtime, And Scrap, Yuan Shyi P. Chiu, Jian Hua Lian, Victoria Chiu, Yunsen Wang, Hsiao Chun Wu

Department of Accounting and Finance Faculty Scholarship and Creative Works

Manufacturing firms operating in today’s competitive global markets must continuously find the appropriate manufacturing scheme and strategies to effectively meet customer needs for various types of quality of merchandise under the constraints of short order lead-time and limited in-house capacity. Inspired by the offering of a decision-making model to aid smooth manufacturers’ operations, this study builds an analytical model to expose the influence of the outsourcing of common parts, postponement policies, overtime options, and random scrapped items on the optimal replenishment decision and various crucial system performance indices of the multiproduct problem. A two-stage fabrication scheme is presented to handle …

Minimization Of Multiproduct Fabrication Cost Featuring Rework, Commonality, External Provider, And Postponement, Peng Cheng Sung, Chia Ming Lai, Yunsen Wang, Yuan Shyi P. Chiu

Department of Accounting and Finance Faculty Scholarship and Creative Works

This study presents a multiproduct fabrication cost-minimization model featuring external providers, commonality, rework, and postponement in the supply chain environment. Customers’ requirements simultaneously emphasize quality, variety, and fast response time in current markets. To satisfy customer needs, most manufacturers in various industries (e.g., clothing, household goods, automotive, etc.) plan their multiproduct fabrication by incorporating a postponement strategy, rework process, and an outsourcing option. Motivated by the viewpoints above, this study offers a decision support system to address customers’ external expectations while optimizing internal operating expenses and machine utilization. We propose a single-machine, two-stage delayed differentiation system under a rotation cycle …

Crime And The Effects It Has On Business Development, Alexis Pimental

Honors Theses and Capstones

This reading highlights the topic of crime through exploring what crime is as well as the different types of crimes in our everyday lives. Specifically, this research paper wants to highlight the crimes that may affect businesses, as well as the relationships between crime and business development. By using facts and statistics, we will dive into the relationship between the two and see why certain businesses may find success while other businesses struggle. We will also be looking at different pieces of literature, reviewing them, and drawing conclusions from the literature being discussed. The literature review as well as assessments …

De-Fi Protocol Token Valuation By Projecting Token Flows And Estimating An Appropriate Risk Premium, Anders C. Brucker

Honors Theses and Capstones

No abstract provided.

Modeling The Impact Of Adding Cryptocurrency In A Portfolio, Ashley Pineault

Honors Theses and Capstones

This study examines the backgrounds of Bitcoin and Ethereum. How they came about, where they differ from one another in functions, and what investors believe will be a better cryptocurrency stock as an investment to include in an optimized portfolio. It will also study the impact of adding two leading cryptocurrencies, Bitcoin and Ethereum, into a hypothetical, optimal investment portfolio. Data collection includes the adjusted closing price of 30 diversified stocks from 2016 to 2021. Those adjusted closing prices are the beginning of determining the optimal portfolio for three separate portfolios. One has the Ethereum cryptocurrencies, the other has Bitcoin …

Should Cryptocurrency And Nft’S Be Used As Collateral?, John M. Helmanis

Honors Theses and Capstones

Nothing has captured the attention of modern finance quite like cryptocurrencies and non-fungible tokens (NFT), whether it’s the massive skyrocketing price or the next day's sudden drop wiping out millions of dollars seemingly overnight. This paper seeks to understand cryptocurrencies and NFT's position in modern finance in terms of collateral. Specifically, the question that will be answered is should cryptocurrencies and NFTs be used as collateral? This question has relevance because widespread use as collateral would signify validation as an asset class that holds value. Some cryptocurrency brokers are making loans backed by cryptocurrency, but currently, no major banks are …

Netflix Strategic Business Analysis, Kegan L. Morris

Undergraduate Theses, Professional Papers, and Capstone Artifacts

An external analysis done to identify opportunities and threats Netflix faces.

Bubbles Through The Years: An Examination Of Unique And Analogous Characteristics Among Financial Manias From The South Sea Bubble To The Great Financial Crisis, Matthew Hines

CMC Senior Theses

Throughout history, financial bubbles have been shrouded in fear and misunderstanding, with hope, greed, and hearsay fueling inane degrees of risk-taking amongst financial powerhouses and the common retail investor alike. While many studies have been conducted to delve into the unique attributes, causes, effects, and consequences of almost every crisis since adequate data could be recorded and preserved, it is not common for the varying types of crises to be directly compared in their core attributes and price movements. This paper conducts such an examination, with a look into ten different crises across the equity, real estate, and oil markets …

How Punxsutawney Phil’S Predictions Affect The Stock Market: A Groundhog Day Analysis, Jessica Cuna Zamora

CMC Senior Theses

With its roots dating back to 1887, Groundhog Day has cemented itself as a beloved American holiday where people gather to see if Punxsutawney Phil will predict 6 more weeks of winter, or an early arrival of spring. Utilizing the data and methodology framework from Shanaev, Savva, and Fedorova (2021) to test if Groundhog Day predictions have any effect on S&P 500 returns, this paper revisits and revises the analysis in attempt to replicate and improve the original findings with a dummy-variable regression while controlling for other calendar anomalies. Additionally, this study expands the original analysis by including two new …

Strategies For Accessing Finance By Small And Medium Enterprises, Ezechiel Nibigira

Walden Dissertations and Doctoral Studies

No

Impact Of Islamic Financial Principles On Mitigating The Covid-19 Financial Crisis In Pakistan, Mohammed Monzur Murshid

Walden Dissertations and Doctoral Studies

The COVID-19 pandemic caused a global financial crisis. Governments and central banks around the world took unprecedented measures to mitigate the effect of the pandemic-triggered financial crisis and maintain the stability of the financial system. The purpose of this cross-sectional quantitative study was to examine the capability of the Islamic financial system to mitigate the effect of the pandemic-induced financial crisis on the economy of Pakistan in 2020. The International Monetary Fund enhanced dynamic stochastic general equilibrium (IMF-DSGE) model provided the framework for this study. Data collection included conventional financial sector parameters, Islamic financial sector parameters, and country-level macroeconomic data …

Monte Carlo And Bootstrapping Carry Trade Simulations In Excel, Tom Arnold, C. Mitchell Conover, Joseph Farizo

Finance Faculty Publications

In a currency carry trade, an investor borrows money in a low interest rate currency and invests in a high interest rate currency. The trade is profitable if the future exchange rate does not adjust to the interest rate differential. After downloading exchange rate data, a Monte Carlo simulation of a carry trade is performed in Excel based on a normal distribution and the data’s mean and standard deviation. A bootstrapping carry trade simulation exercise is also generated by randomly selecting observations from the historical data. In contrast to the Monte Carlo simulation, the bootstrapping exercise preserves the skewness within …

Decisions, Decisions, Decisions: Summer Activities For Anna!, David Henderson, John Marsh

Business

Anna Swanson will soon be home for the summer. Her parents John and Carol are trying to figure out the best way to keep Anna busy for the summer using a $400 gift from her grandmother. Given their budget, John and Carol must weigh the cost, benefits, and break-even points of options like a YMCA pool pass, amusement park pass, or various summer camps and try to find the best option or options that will keep young Anna busy during the summer.

Governing Fintech 4.0: Bigtech, Platform Finance, And Sustainable Development, Douglas Arner, Ross Buckley, Kuzi Charamba, Artem Sergeev, Dirk Zetzsche

Fordham Journal of Corporate & Financial Law

Over the past 150 years, finance has evolved into one of the world’s most globalized, digitized, and regulated industries. Digitalization has transformed finance, but also enabled new entrants over the past decade in the form of technology companies, especially FinTechs and BigTechs. As a highly digitalized industry, incumbents and new entrants alike are increasingly pursuing similar approaches and models, focusing on the economies of scope and scale typical of finance and the network effects typical of data. Predictably, this has resulted in the emergence of large digital finance platforms. We argue that the combination of digitalization, new entrants (especially BigTechs), …

2022 Crummer Suntrust Portfolio Recommendations: Crummer Investment Management 23rd Anniversary, Jason Philips, Michael Capra, Denis Golubev, Connor Jensen, Kovi Katz

Crummer Truist Portfolios

SunTrust (now Truist) endowed this portfolio to provide scholarships for future Crummer students and to give current students a practical, hands-on learning opportunity. This year, we are pleased to be able to disburse $55,000 to be used for scholarships. We are extremely grateful for SunTrust’s generosity and investment in higher education. We have all learned a great deal from this experience and the responsibility of managing real money. Our first challenge is to establish a portfolio position that takes advantage of economic opportunities while avoiding unnecessary risk and conforming to the Crummer SunTrust Investment Policy Statement (IPS). We are also …

Audit Firm Culture: An Evolution Of The Audit Profession In Response To External Forces, Christina T. Alberti

2022

The COVID-19 pandemic is disrupting business operations throughout the world, including the working procedures of audit professionals. Yet, to date, research on COVID-19’s impact on auditing is limited. This is despite its potential long-term implications. Thus, my dissertation uses a mix of research methods to examine auditors’ response to, and regulators’ evaluation of auditors’ response to, COVID-19.

The first paper (co-authored) synthesizes research on audit firm culture (AFC) over the past decade, reviewing recent developments in research on AFC and its influence on audit quality and auditors’ work attitudes. Using a three-phase model based on prior research and professional guidance, …

Optimizing Pension Outcomes Using Target Volatility Investment Concept, Zefeng Bai

2022

The target volatility strategy is a very popular investment concept in financial marketplace. For my dissertation, I focus on studying the target volatility investment concept in application to pension accumulation as well as decumulation stages. Additionally, I extend a basic target volatility strategy by introducing trading boundaries to its asset allocation mechanism. My dissertation study follows a three-paper format.

In paper one, we propose a new pension strategy that aims at improving the protection of a long-term pension plan in volatile market conditions. Over a hypothetical twenty-year pension scheme, we show that our newly proposed strategy, which attaches a target …

Competing For Deal Flow In Local Mortgage Markets, Darren Aiello, Mark Garmaise, Gabriel Natividad

Faculty Publications

The U.S. mortgage market exhibits competitive instability in which some lenders emerge rapidly from the fringe to substantial market shares. Using inferred discontinuities in application acceptance models to generate local lending shocks, we analyze the impact on a lender of a surge in originations by its competitors. We show that the quickest-growing (not the largest) competitors divert applications and originations from other lenders. Facing a quickly-growing competitor, lenders charge higher interest rates, partially due to the increased risk of their loans. Loan performance suffers for other lenders as the quickestgrowing competitor’s originations increase.

Exploring The Use Of Rasch Models To Construct Measures Of Firms’ Profitability With Multiple Discretization Ratio-Type Data, Chen Qiu

Theses and Dissertations--Education Sciences

Ratio-type data plays an important role in real-world data analysis. Mass ratios have been created for different purposes, depending on time and people’s needs. Then, it is necessary to create a comprehensive score to extract information from those mass ratios when they measure the same concept from different perspectives. Therefore, this study adopts the same logic of psychometrics to systematically conduct scale development on ratio-type data under the Rasch model. However, it is first necessary to discretize the ratio-type data for use in the Rasch model. Therefore, this study also explores the effect of different data discretization methods on scale …

Impact Of Covid-19 Pandemic On Household Financial Decisions: A Consumer Vulnerability Perspective, Atefeh Yazdanparast, Yasser Alhenawi

School of Business

This study joins a rapidly growing body of research that investigates the multi-faceted impacts of the Covid-19 pandemic on consumers' behavior. Specifically, we examine how the pandemic-induced state of vulnerability impacts consumers' saving, investing, and spending decisions. Using survey data from four different countries (i.e., USA, UK, South Africa, and Mexico), we examine the role of personality on consumer vulnerability, create an index of consumer vulnerability, and establish the role of vulnerability in impacting important financial decisions. We report evidence that perceptions of vulnerability and the pandemic-induced changes in financial and consumption behaviors vary across residents of developed and developing …

The Gender Bias Burden On Business: Women's Access To Credit In Bahrain, Sandra J. Thiman

Mary Ann Bolton Undergraduate Research Award

Entrepreneurship is essential to virtually every economy; however, Bahraini women face many challenges accessing business development. In particular, a major constraint for these women is their access to capital support. In 2020, the government signed a law prohibiting gender-based discrimination in access to credit to help the issue; nonetheless, its effectiveness has yet to be systematically examined. Using data from several sources, I test whether the law significantly affected the gender gap in borrowing for business purposes while controlling for other variables. Importantly, I find that women’s labor force participation is a significant factor in reducing the borrowing gap between …